Volvo Monitoring & Concept Center: We
don’t predict the future, we create it

17 May 2004

More than just a styling studio, Volvo Car
Corporation's Monitoring & Concept Center (VMCC) in California
develops conceptual and finished products by merging holistically the core
skills of design, technology and business development.

Minus all hoopla, Volvo has gathered together a
small team of innovative design, technology and business thinkers in southern
California, charged with developing groundbreaking automobile concepts and
products.

"The goal of the VMCC since its establishment
in 1986 has been to look for concepts in new places, put together smart ideas
and turn them into action, helping Volvo Cars grow in today’s tough auto
market," says Doug Frasher, strategic design chief at the Volvo Cars
think-tank. "We aim to distinguish ourselves by seeing the Big Picture
beyond design or style alone."

To achieve its aims, VMCC has developed a
three-legged solutions-driving approach integrating business, design and
technology skills that sets it apart from the other California-based styling
studios of Volvo’s competitors. VMCC’s holistic approach involves
making sense of the myriad technological, social, demographic, environmental,
brand and design trends shaping society.

Geza Loczi, Director of Design at VMCC,
says today ‘all design studios are striving to emulate’ what Volvo is
doing. "The big difference," he says, "is that we were first as
well as our ability, power and breadth of approach to do things in a
non-traditional way. It’s about getting out of the comfort zone."

The secret behind the Volvo Monitoring &
Concept Center is the way it encourages its unique partnership of designers,
engineers and business-growth experts. By leveraging the power of each
individual, VMCC believes it puts Volvo Cars in a better position to develop
future-proof solutions that will withstand the test of time.

"Because we need to be both rational and
emotional in our thinking, the strategic imperative of the 20 or so people
working for VMCC is about being market-driven, not product-driven," adds
Geza Loczi, with VMCC since the beginning.

He says you cannot have a great car if you
don’t have a good technical product geared to meet the functionality needs
of customers: "For VMCC, it is not the individual components of the car
that counts, but the combined orchestrated effect."

The mold-breaking approach to designing a new car,
which starts with monitoring information about what trends may influence how
the world looks in 10, 20 or 30 years, has already resulted in a series of
tangible vehicles. VMCC lays behind such innovative Volvo cars as the XC90,
Volvo’s entry into the world of SUV’s, the S80 sedan, the top-selling
S60, the eye-catching Safety Concept Car (SCC) and the Environmental Concept
Car (ECC).

"The true test is whether any of our ideas
gain traction in the real world, so it’s gratifying to see many of our
original concepts being driven by happy customers as finished products in
Europe, Asia and North America," says Doug Frasher.

He adds: "Our bottom-line mission is to
broaden Volvo Car’s customer base. We do that by being totally open to new
ideas based on business-driving approaches. This enables us to drive
development and create, rather than predict, the future."

Volvo Cars has provided unprecedented autonomy to
its monitoring and concept center, allowing the staff to fully exploit the
three legs of strategic innovation in generating future products. In a world
where car owners are spoilt for choice, Volvo believes there is ongoing need to
constantly look for ‘the next big thing’.

Geza Loczi says: "It is about taking
advantage of VMCC’s knowledge-base of multiple skills, cross-pollinating
the different disciplines and capitalizing on the findings to achieve a clear
sight line into the future."

Background

Volvo Car Corporation sold 415.000 cars in 2003
in more than 100 markets globally. Making cars since 1927 and employing 28,000
people, Volvo Car Corporation is a member of the Ford Premier Automotive
Group.